{"id":17363,"date":"2018-02-17T09:00:38","date_gmt":"2018-02-17T14:00:38","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=17363"},"modified":"2020-09-17T09:29:30","modified_gmt":"2020-09-17T14:29:30","slug":"take-ira-offshore-2020","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/take-ira-offshore-2020\/","title":{"rendered":"Take Your IRA Offshore in 2020"},"content":{"rendered":"

2020 is the year to take your IRA offshore. The US markets have never been more volatile and the US government has never been more hostile to certain types of investments. The crypto and ICO markets have disrupted Wall Streets profits and the government is moving to protect these high dollar donors. The bottom line is that you should get your biggest cash reserve, your IRA, 401-K or Defined Benefit plan, out of the United States in 2020. <\/span><\/p>\n

The Dow just had its worst week in two years. The Dow Jones industrial average popped more than 300 points, recovering from deep early losses in what still amounted to the worst week in two years. <\/span><\/p>\n

And do you remember December 2, 2017 when fake news tanked the markets? ABC News falsely claimed that then-presidential candidate Donald Trump ordered Lt Gen Michael Flynn to contact Russian officials during the 2016 campaign. Following the report, the stock market tanked.<\/span><\/p>\n

My point here is that the US markets are <\/span>extremely volatile<\/span><\/a>. The constant attacks on President Trump are fueling the fear, not to mention the pending increase in interest rates. No matter your political affiliation, you must see the financial risk in the infighting. <\/span><\/p>\n

2020 is the time to get your most important portable asset, your retirement account, out of harm’s way. Now is the time to take action to protect your cash reserve by moving it abroad. <\/span><\/p>\n

Once you move your IRA offshore, you\u2019ll have access to advanced crypto investments and ICOs not available in the United States. The US SEC has pushed most quality ICOs out of the country in order to preserve the IPO and other capital raising industries. The only way to invest in these ICOs is through an offshore structure such as an <\/span>Offshore IRA LLC<\/span>. <\/span><\/a><\/p>\n

The US SEC pushed ICOs offshore by requiring them to go through the same procedures and compliance as an IPO. Thus, anyone issuing an ICO will need to have the same capital for legal and other fees as someone issuing an IPO. A major benefit of an ICO over an IPO is that they\u2019re relatively low costs and eficity\u2026 \u00a0and that early stage businesses can issue them without all of the overhead of an IPO. <\/span><\/p>\n

As a result, most companies are avoiding the US and issuing their ICOs offshore. If you want to get in before the venture funds and silicon valley angel investors have picked over the best deals, you need to be offshore.\u00a0<\/span><\/p>\n

Then there are the <\/span>IRA tax benefits only available offshore<\/b>. Yes, if you\u2019re a sophisticated investor, moving your retirement account offshore in 2020 can reduce your taxes! Here\u2019s how: <\/span><\/p>\n

When you <\/span>buy real estate in an IRA<\/span><\/a> with a mortgage, or buy stocks or crypto with a loan, the income associated with the leverage is called \u201cUnrelated Business Income\u201d or UBI. If you use leverage in the US, you pay tax on this portion of your gain (UBIT). <\/span><\/p>\n

For example, let\u2019s say you buy a rental property in the US using your IRA and a mortgage for 50% of the value. About half of your rental profits will be taxed in the US at (basically) ordinary rates before they get to your IRA. When you sell the property, about half of the capital gain will be taxed at ordinary rates before flowing into your retirement account. <\/span><\/p>\n

Enter into this same transaction offshore with a foreign property and you pay zero US tax. Simply set up a <\/span>UBIT blocker corporation<\/span> in between your offshore IRA LLC and the real estate holding company and eliminate US tax on leverage. <\/span><\/p>\n